Is it just me, or is there a change on this forum?

[lizzie]

Can a $3m, house in a decent neighbourhood rise massively in price?

I remember, no so long ago, when upwards of $1m was laughable in Newcastle unless it was inner ring, on the beach ... now properties several blocks from the beach are selling for over $2mil ... and ordinary houses a drive away from the beach, but still in the prime suburbs, are going for over $1mil ...

This upper end has increased by around 30% in the last 18 months.

 

[grubar30]

The contrarian in me thinks this could be a sign the price bounce is nearing an end

I guess the permabull might see it as things just warming up...

True to both points.

 

[mrsdawnrazor]

I would have thought there is already one in existence in "Property Finance"?

If not; against our PPoR we have:
1. an Investment LOC - used for anything investment based basically - initially for deposits and purchases costs.
2. an Everyday LOC - all wages and rent go in here, and all personal living expenses are paid out of this account,
3. an Overdraft for use in the Workshop business,
4. a loan for the purchase of the business.
5. a Visa card for the business.

There is also a separate loan for the (last remaining) IP and is secured by it. All other IP's we owned had separate loans secured by the respective property.

This is exactly our set up and works well. I have no non deductible debt now so use the every day LOC as a standard transaction account and put any spare cash in an offset against the largest deducible loan.

 

[Ideo]

I remember, no so long ago, when upwards of $1m was laughable in Newcastle unless it was inner ring, on the beach ... now properties several blocks from the beach are selling for over $2mil ... and ordinary houses a drive away from the beach, but still in the prime suburbs, are going for over $1mil ...

This upper end has increased by around 30% in the last 18 months.

The lower end is going well as well.

I was lined up for a 2,1,1 unit in Cooks Hill as a short term live in, long term rental. Came on the market last Saturday arvo.

It was under offer midday Sunday. Missed the boat. happened a few times now.

Plenty of units under the 420k mark are turning over very quickly.

 

[Deltaberry]

True to both points.

Well if you're a contrarian you wouldn't jump into a hot gold market, while avoiding a cool property market.

 

[Jacque]

The market has changed particularly this year and you cannot rely on the current statistics to yet support this. There's always that lag time between settlements and data being supplied. We are seeing boom activity in many markets, but especially the lower and median levels across most of the Sydney suburbs we work in. My comments a few mths ago on this very topic http://www.apimagazine.com.au/api-online/news/2013/07/are-we-swinging-back-to-a-sellers-market

 

[china]

I would have thought there is already one in existence in "Property Finance"?

If not; against our PPoR we have:
1. an Investment LOC - used for anything investment based basically - initially for deposits and purchases costs.
2. an Everyday LOC - all wages and rent go in here, and all personal living expenses are paid out of this account,
3. an Overdraft for use in the Workshop business,
4. a loan for the purchase of the business.
5. a Visa card for the business.

There is also a separate loan for the (last remaining) IP and is secured by it. All other IP's we owned had separate loans secured by the respective property.

BV why do you have an investment LOC against PPOR? Why not just an ordinary home loan with separate subaccounts against your PPOR - with an offset facility? These have lower variable rates than LOC. Spare cash can go into this offset.

And why an every day LOC? Why not just an ordinary transaction account?

 

[Rixter]

BV why do you have an investment LOC against PPOR? Why not just an ordinary home loan with separate subaccounts against your PPOR - with an offset facility? These have lower variable rates than LOC. Spare cash can go into this offset.

And why an every day LOC? Why not just an ordinary transaction account?

I have the same (LOC's against PPOR for Personal & Investment)...because its a far simpler financial structure and for the sake of 10 basis points difference there's no real additional expense.

IMHO an offset is useful if you intend to convert a PPOR to an IP at a later date.